UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 


 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported):  February 9, 2010

 

AECOM TECHNOLOGY CORPORATION

(Exact name of Registrant as specified in its charter)

 

Delaware

 

1-33447

 

61-1088522

(State or Other Jurisdiction

 

(Commission

 

(I.R.S. Employer

of Incorporation)

 

File Number)

 

Identification No.)

 

555 South Flower Street, Suite 3700

Los Angeles, California  90071

(Address of Principal Executive Offices, including Zip Code)

 

Registrant’s telephone number, including area code  (213) 593-8000

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o            Pre-commencement communications pursuant to Rule 14d-(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 2.02.                                      Results of Operations and Financial Condition.

 

On February 9, 2010, AECOM Technology Corporation issued a press release announcing the financial results for its fiscal first quarter ended December 31, 2009. A copy of the press release is attached to this report as Exhibit 99.1.  Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

 

Item 9.01                                         Financial Statements and Exhibits. 

 

(d)  Exhibits

 

99.1         Press Release, dated February 9, 2010, announcing AECOM’s financial results for the first quarter ended December 31, 2009.

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereto duly authorized.

 

 

AECOM TECHNOLOGY CORPORATION

 

 

 

 

Dated: February 9, 2010

By:

/s/ DAVID Y. GAN

 

 

David Y. Gan

 

 

Vice President, Assistant General Counsel

 

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EXHIBIT INDEX

 

Exhibit

 

 

 

 

 

99.1

 

Press Release, dated February 9, 2010, announcing AECOM’s financial results for the first quarter ended December 31, 2009.

 

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Exhibit 99.1

 

GRAPHIC

For Immediate Release

 

NR 10-0201

 

Press Release

Contact: Paul Gennaro
SVP & Chief Communications Officer
212.973.3167
Paul.Gennaro@aecom.com

 

AECOM reports 40 cents EPS, backlog of $10.0 billion for first quarter of fiscal year 2010

 

·                  First-quarter diluted earnings per-share of 40 cents, up 5% from the same period last year.

 

·                  Net income for first quarter increased 12% year over year to $46 million.

 

·                  Revenue, net of other direct costs, for the first quarter increased 8% year over year to $1.0 billion.

 

·                  Revenue for first quarter increased 2% year over year to $1.5 billion.

 

·                  Backlog at December 31, 2009, increased 11% year over year to $10.0 billion.

 

LOS ANGELES (Feb. 9, 2010) — AECOM Technology Corporation (NYSE: ACM), a leading provider of professional technical and management support services for government and commercial clients around the world, announced today its financial results for the first quarter of fiscal year 2010, which ended Dec. 31, 2009.

 

AECOM reported net income of $46 million for the first quarter, or diluted earnings per share (EPS) of 40 cents.  These results represent an increase of 12% over net income of $41 million — and an increase of 5% over diluted EPS of 38 cents — for the same period last year.

 

Operating income for the first quarter decreased 5% year over year to $65 million due to $8.2 million of one-time charges associated with a severance charge in the United Kingdom and marketing and branding expenses related to AECOM’s first-quarter global brand launch. These are non-recurring charges and AECOM remains on track to achieve its 20-basis-point annual EBITDA margin improvement in fiscal year 2010.

 

First-quarter revenue increased to $1.5 billion, 2% higher than the first quarter of fiscal year 2009.  AECOM’s gross revenue includes a significant amount of pass-through costs and, therefore, the company believes revenue, net of other direct costs, which is a non-GAAP measure, also provides a valuable perspective on its business results.

 

AECOM’s first-quarter revenue, net of other direct costs, increased to $1.0 billion, 8% higher than the same period last year.

 

—more—

 



 

“AECOM saw continued strength across its markets in the first quarter,” said John M. Dionisio, AECOM president and chief executive officer.  “Our operations in North America, Asia, Australia and the Middle East were particularly solid, as was our U.S. Federal Government business, where we are pursuing nearly $15 billion of new work.”

 

“AECOM’s diversified business model and its strength in key end markets, such as transportation and facilities, have positioned us to capitalize on stimulus-related opportunities in 2010 and beyond,” noted Dionisio.

 

Business Segments

 

In addition to providing consolidated financial results, AECOM reports separate financial information for its two segments: Professional Technical Services (PTS) and Management Support Services (MSS).

 

Professional Technical Services

 

The PTS segment delivers planning, consulting, architecture and engineering design, and program and construction management services to institutional, commercial and government clients worldwide.

 

For the first quarter of fiscal year 2010, the PTS segment reported revenue of $1.20 billion and operating income of $74 million, compared to revenue of $1.23 billion and operating income of $76 million for the same period during fiscal year 2009.  This represents a 2% decrease in revenue and a 3% decrease in operating income year over year.  PTS revenue, net of other direct costs, increased 4% year over year to $884 million.

 

Management Support Services

 

The MSS segment provides program and facilities management and maintenance, training, logistics, consulting, technical assistance and systems integration services, primarily for agencies of the U.S. government.

 

For the first quarter of fiscal year 2010, the MSS segment reported revenue of $276 million and operating income of $13 million, compared to revenue of $223 million and operating income of $10 million for the same period during fiscal year 2009.  This represents a 24% increase in revenue and a 34% increase in operating income year over year.  MSS revenue, net of other direct costs, increased 82% year over year to $78 million.

 

Backlog

 

AECOM announced backlog totaling $10.0 billion at Dec. 31, 2009, an 11% increase year over year.

 

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“During the first quarter of 2010, we continued to successfully execute our growth strategy across our end markets and geographies,” said Michael S. Burke, AECOM executive vice president and chief financial officer.  “We are seeing encouraging trends, including more than $750 million in wins in the month of January alone.  These wins position AECOM for continued growth in our global end markets.”

 

Balance Sheet

 

AECOM has a strong balance sheet to fund growth. At Dec. 31, 2009,the company had $253 million of total cash and cash equivalents, $187 million of debt and $600 million in committed bank facilities with over $470 million in unused capacity.

 

Outlook

 

Based on its results through the first quarter of the fiscal year, as well as its backlog, AECOM has reaffirmed its EPS outlook for fiscal year 2010 of $1.90 to $2.00.  “Looking ahead, we believe that AECOM is well positioned to benefit from stimulus spending on infrastructure as well as from the overall economic recovery,” said Burke.  “As such, we remain confident in our guidance for the full year.”

 

AECOM is hosting a conference call on Tuesday, Feb. 9, at 11 a.m. EST, during which management will make a brief presentation on the company’s results, strategies and operating trends.  Interested parties can listen to the conference call and view accompanying slides via webcast at www.aecom.com.  The webcast will be available for replay following the call.  Those wishing to dial in to the call via telephone can do so at (866) 700-7173 or (617) 213-8838.  The participant passcode will be 39751985.

 

About AECOM

 

AECOM (NYSE: ACM) is a global provider of professional technical and management support services to a broad range of markets, including transportation, facilities, environmental, energy, water and government.  With approximately 45,000 employees around the world, AECOM is a leader in all of the key markets that it serves.  AECOM provides a blend of global reach, local knowledge, innovation, and technical excellence in delivering solutions that enhance and sustain the world’s built, natural, and social environments.  A Fortune 500 company, AECOM serves clients in more than 100 countries and had revenue of $6.1 billion during the 12-month period ended December 31, 2009.  More information on AECOM and its services can be found at www.aecom.com.

 

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Forward-Looking Statements: All statements in this press release other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any projections of earnings or other financial items; any statements of the plans, strategies and objectives for future operations; and any statements regarding future economic conditions or performance.  Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements.  Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in forward-looking statements include: uncertainties related to funding, audits, modifications and termination of long-term government contracts; losses under fixed-price contracts; limited control over operations run through our joint venture entities; misconduct by our employees or consultants or our failure to comply with laws or regulations; failure to successfully execute our acquisition strategy; the need to retain and recruit key technical and management personnel; and unexpected adjustments and cancellations related to our backlog.  Additional factors that could cause actual results to differ materially from our forward-looking statements are set forth in our reports filed with the Securities and Exchange Commission.  We do not intend, and undertake no obligation, to update any forward-looking statement.

 

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AECOM Technology Corporation

Consolidated Statement of Income

(in thousands, except per share data)

 

 

 

Three Months Ended

 

 

 

December 31, 2009

 

December 31, 2008

 

 

 

 

 

 

 

Revenue

 

$

1,480,784

 

$

1,452,628

 

Other direct costs

 

518,458

 

562,038

 

Revenue, net of other direct costs (non-GAAP)

 

962,326

 

890,590

 

Cost of revenue, net of other direct costs

 

879,349

 

809,983

 

Gross profit

 

82,977

 

80,607

 

 

 

 

 

 

 

Equity in earnings of joint ventures

 

4,378

 

5,736

 

General and administrative expenses

 

21,865

 

17,246

 

Income from operations

 

65,490

 

69,097

 

 

 

 

 

 

 

Other income (expense)

 

1,704

 

(4,788

)

Interest (expense), net

 

(975

)

(3,598

)

Income from continuing operations before income tax expense

 

66,219

 

60,711

 

 

 

 

 

 

 

Income tax expense

 

16,465

 

17,460

 

 

 

 

 

 

 

Income from continuing operations

 

49,754

 

43,251

 

 

 

 

 

 

 

Discontinued operations, net of tax

 

113

 

500

 

 

 

 

 

 

 

Net income

 

49,867

 

43,751

 

 

 

 

 

 

 

Noncontrolling interests in income of consolidated subsidiaries, net of tax

 

(4,085

)

(2,846

)

 

 

 

 

 

 

Net income attributable to AECOM

 

$

45,782

 

$

40,905

 

 

 

 

 

 

 

Net income allocation:

 

 

 

 

 

Preferred stock dividend

 

$

35

 

$

36

 

Net income available for common stockholders

 

45,747

 

40,869

 

Net income attributable to AECOM

 

$

45,782

 

$

40,905

 

 

 

 

 

 

 

Net income attributable to AECOM per share:

 

 

 

 

 

Basic

 

 

 

 

 

Continuing operations

 

$

0.40

 

$

0.39

 

Discontinued operations

 

 

 

 

 

$

0.40

 

$

0.39

 

 

 

 

 

 

 

Diluted

 

 

 

 

 

Continuing operations

 

$

0.40

 

$

0.38

 

Discontinued operations

 

 

 

 

 

$

0.40

 

$

0.38

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

Basic

 

113,153

 

104,529

 

Diluted

 

114,498

 

106,620

 

 

5



 

AECOM Technology Corporation

Balance Sheet and Cash Flow Information

(in thousands)

 

 

 

December 31, 2009

 

September 30, 2009

 

Balance Sheet Information:

 

 

 

 

 

Cash and cash equivalents

 

$

252,949

 

$

290,777

 

Working capital

 

659,132

 

657,796

 

Working capital, net of cash and cash equivalents

 

406,183

 

367,019

 

Total debt

 

186,759

 

171,209

 

Total assets

 

3,833,525

 

3,789,881

 

Total stockholders’ equity

 

1,839,893

 

1,729,718

 

 

 

 

Three Months Ended

 

 

 

December 31, 2009

 

December 31, 2008

 

Cash Flow Information:

 

 

 

 

 

Net cash used in operating activities (includes discontinued operations)

 

$

(34,573

)

$

(7,674

)

 

AECOM TECHNOLOGY CORPORATION

Reportable Segments

(in thousands)

 

 

 

Professional
Technical
Services

 

Management
Support
Services

 

Corporate

 

Total

 

Three Months Ended December 31, 2009

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,204,439

 

$

276,345

 

$

 

$

1,480,784

 

Other direct costs

 

320,598

 

197,860

 

 

518,458

 

Revenue, net of other direct costs (non-GAAP)

 

883,841

 

78,485

 

 

962,326

 

Cost of revenue, net of other direct costs

 

812,203

 

67,146

 

 

879,349

 

Gross profit

 

71,638

 

11,339

 

 

82,977

 

Gross profit as a % of revenue

 

5.9

%

4.1

%

 

5.6

%

Gross profit as a % of revenue, net of other direct costs (non-GAAP)

 

8.1

%

14.4

%

 

8.6

%

Equity in earnings of joint ventures

 

2,272

 

2,106

 

 

4,378

 

General and administrative expenses

 

 

 

21,865

 

21,865

 

Income from operations

 

$

73,910

 

$

13,445

 

$

(21,865

)

$

65,490

 

 

 

 

 

 

 

 

 

 

 

Contracted backlog

 

5,434,423

 

544,256

 

 

5,978,679

 

Awarded backlog

 

3,562,220

 

469,232

 

 

4,031,452

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31, 2008

 

 

 

 

 

 

 

 

 

Revenue

 

$

1,229,826

 

$

222,802

 

$

 

$

1,452,628

 

Other direct costs

 

382,436

 

179,602

 

 

562,038

 

Revenue, net of other direct costs (non-GAAP)

 

847,390

 

43,200

 

 

890,590

 

Cost of revenue, net of other direct costs

 

774,063

 

35,920

 

 

809,983

 

Gross profit

 

73,327

 

7,280

 

 

80,607

 

Gross profit as a % of revenue

 

6.0

%

3.3

%

 

5.5

%

Gross profit as a % of revenue, net of other direct costs (non-GAAP)

 

8.7

%

16.9

%

 

9.1

%

Equity in earnings of joint ventures

 

2,977

 

2,759

 

 

5,736

 

General and administrative expenses

 

 

 

17,246

 

17,246

 

Income from operations

 

$

76,304

 

$

10,039

 

$

(17,246

)

$

69,097

 

 

 

 

 

 

 

 

 

 

 

Contracted backlog

 

4,420,974

 

712,164

 

 

5,133,138

 

Awarded backlog

 

3,670,702

 

194,025

 

 

3,864,727

 

 

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